Do you run a business that sells in Florida? Did you pay Florida sales taxes and want to get your money back? Here’s what you need to know.
Florida Sales Taxes for Individuals
Here are some frequently asked questions about Florida sales taxes that apply to consumers.
Can you deduct sales taxes on your federal income tax return?
Sales taxes are eligible for the State and Local Tax itemized deduction on your federal income tax return. You can either deduct your income taxes or the sales tax you paid during the year. Florida residents don’t pay Florida income taxes, but you may have income taxes from other states you worked in.
You can deduct up to $10,000 in combined sales tax (or income tax but not both sales and income tax) plus property tax.
There are two ways to deduct sales tax. You can use whatever gives you the highest deduction or just do what’s easier.
- Save all your receipts and add up the sales tax you paid during the year.
- Use the amount from the IRS Sales Tax Deduction Calculator.
As an example, I entered a married couple with two children earning the median Florida income of $59,227 and living in Tallahassee. The result was a deduction of $921.25.
Do I owe sales tax on online purchases if the company didn’t collect Florida sales tax?
Yes, you are required by law to pay sales tax even if the business doesn’t collect sales tax. You must file an Out-of-State Purchase Return to report your purchases and pay the sales tax due.
Out-of-State Purchase Returns are due on April 1st, July 1st, October 1st, and January 1st for purchases made during the three months before each due date.
How does the back-to-school sales tax holiday work?
Florida typically has a sales tax holiday for a few days during August. During the holiday, designated items are exempt from sales taxes.
Lawmakers pass a law to declare the sales tax holiday each year. Covered items usually include both school supplies and clothing. Computers, printers, and technology items are sometimes included. There are usually dollar limits on individual items (e.g., clothing items can’t cost more than $100 each).
You do not need to be a student to take advantage of the sales tax holiday. Anyone purchasing eligible items during this time will not pay sales tax. Local news organizations and major retailers usually post the current list of items and dollar limits when the legislature passes the tax holiday for the year.
How does the hurricane preparation sales tax holiday work?
The hurricane preparedness sales tax holiday works the same as the school sales tax holiday but for hurricane preparedness supplies. It is typically in May or early June each year.